Imagination Technologies Chief Executive change

[DemetraS1]

Few Intel chips actually use PowerVR and intel isn't shy to say they want to move them to in-house GPU when possible.

Samsung, Rockchip, Mediatek and others have been adopting ARM's Mali GPUs, except for the higher-end/tablet SoCs.
Qualcomm and Broadcomm also tend to use their in-house GPU.

 

[tangey]

Maybe not totally underelated to the current major changes at IMG
http://uk.businessinsider.com/apple...rs-company-designing-own-gpu-2016-5?r=US&IR=T

An analysis of LinkedIn profiles shows that Apple continues to hire engineers from Imagination Technologies, with at least five employees jumping from Imagination to Apple in the past eight months, including one manager who had spent 16 years at Imagination.

I guess there would have been some flow in the past, given that Apple is using IMG hardware, however it the analysis is correct, to lose a 16 year veteran must be worrying. That's someone who was around from the time MBX was only starting to come out. Also worrying in that IMG have said since the restructuring announcement that they were looking to ADD 50+ staff to the graphics division, not shed jobs.

 

[tangey]

Chinese government taking a look ?

LONDON--China's Tsingua Unigroup International has taken a 3% stake in Imagination Technologies Group PLC (IMG.LN).....

Tsingua is a state-owned firm tasked with advancing China's semiconductor ambitions. Last month it revealed that it has taken a roughly 6% stake in Portland, Ore.-based Lattice Semiconductor Corp.

News of Tsingua's stake in Imagination comes two months after Apple said it held talks about a possible bid for Imagination, adding that it does not currently plan to make an offer.

The longsoon socs are based on MIPS. So I wonder is this a mips play as much as a GPU play. Is Spreadtrum a chinese gov company. Spreadtrum signed a major graphics license some months 6-8 months ago AFAIR.

They've never previously had any stake in IMG. I wonder is this the beginning of a stake building, and if so how/if apple will respond.

 

[Ailuros]

Chinese government taking a look ?





The longsoon socs are based on MIPS. So I wonder is this a mips play as much as a GPU play. Is Spreadtrum a chinese gov company. Spreadtrum signed a major graphics license some months 6-8 months ago AFAIR.

They've never previously had any stake in IMG. I wonder is this the beginning of a stake building, and if so how/if apple will respond.

Look at page 14 & 15 https://imagination-technologies-cl... Results December 2015 FINAL v2 15dec2015.pdf

They didn't exactly "hide" that they're building relationships with Tsinghua University amongst others. Concentrating on China and China responding as they'd expect is the best that could happen to them.

 

[tangey]

Interesting developement, CEO of Tsingua unigroup has put out a statement saying the purchase was for financial NOT strategic reasons.

Tsinghua Unigroup Chairman Zhao Weiguo told Dow Jones Newswires on Tuesday in a written statement that the investment is "a financial one and not a strategic one" for now. "We don't rule out increasing or decreasing our investment stake," he added.

Seems strange that a company with $47B in it's war chest for acquisitions would spend a few million on an investment play. But I guess it's possible, or they don't want apple to start getting too interested in their purchase.

 

[tangey]

Amongst a lot of depressing reading, figures in IMG's full year results, out today, confirm that Apple was the source of 50% of their last years technology revenue. Give that "non-technology" segments are classified as discontinued and up for sale, that effectively means 50% of the entire group revenue came from Apple.

 

[Rodéric]

Amongst a lot of depressing reading, figures in IMG's full year results, out today, confirm that Apple was the source of 50% of their last years technology revenue. Give that "non-technology" segments are classified as discontinued and up for sale, that effectively means 50% of the entire group revenue came from Apple.

Is that surprising considering Apple uses PowerVR exclusively in its mobiles & tablets, and considering its market share overall ?

 

[tangey]

Is that surprising considering Apple uses PowerVR exclusively in its mobiles & tablets, and considering its market share overall ?

I think it's unhealthy when fundamentally your entire existence depends on 1 customer, especially when you are an IP company promoting yourself as have a wide and diverse range of IP and customers. When you become too reliant on a single customer, you start to act at their behest, to the point that it may start to dissuade others from licensing.

50% is a lot higher than it's been before. Apple's contribution in monetary terms is actually down a little compared to last year (when you take the currency conversion into account), which is the first time that's happened AFAIR. It is IMG's non-apple business that has taken a hammering. For example overall licensing revenue is down over 40% year-on-year, with graphics/video licensing down over 45%.

 

[Ailuros]

They'll sell IMGworks after all

 

[Silent_Buddha]

50% is a lot higher than it's been before. Apple's contribution in monetary terms is actually down a little compared to last year (when you take the currency conversion into account), which is the first time that's happened AFAIR. It is IMG's non-apple business that has taken a hammering. For example overall licensing revenue is down over 40% year-on-year, with graphics/video licensing down over 45%.

What is it in constant currency? Companies don't have control over currency exchange rates, hence why constant currency is important in evaluating whether a company is executing well or not so well. If exchange rates favor you it's great. If they don't, there isn't much you can do.

Regards,
SB

 

[Exophase]

Looking at SoCs that have been dominant in the market over the past few years it is certainly my impression that IMG's non-Apple volume has gone way down. And even if that figure stays the same from here on out the amount reported will probably continue to go down as older SoCs are phased out and the lag in reporting catches up.

IMG sure better hope that Apple doesn't get around to rolling out their own GPU IP.

 

[tangey]

Alex Voica, who has been in charge of all of IMG's blog output over the last several years, is heading out the door.

http://www.alexvoica.com/alexit/

 

[Ailuros]

I've been reading his material over the past couple of years mostly in the IMG blog and he always struck me as a nice bloke. All the best for his future

 

[tangey]

I've been reading his material over the past couple of years mostly in the IMG blog and he always stroke me as a nice bloke. All the best for his future

 

[Ailuros]

I've edited it, you grammar nazi I wonder who wil fill his shoes for the blog. I'll vote for Arun only if you guarantee me that he won't actually write any text, but will express everything only in Uttargrams from hell

 

[Kaarlisk]

I believe there is still a lot of potential for the company to grow and be successful in the short to medium term

To me, that sounds ominous. But I am not a native speaker.

 

[Ailuros]

If counting sheep doesn't help to fall asleep, an attempt to read those 118 pages of complete boredom should help: https://imagination-technologies-cl....com/AnnualReports/IMG_Annual-Report_2016.pdf

 

[spworley]

If counting sheep doesn't help to fall asleep, an attempt to read those 118 pages of complete boredom should help: https://imagination-technologies-cl....com/AnnualReports/IMG_Annual-Report_2016.pdf

There's an amusing admission buried inside. It's no surprise to any even casual Imagination observer, but the company's complete dependence on just one key customer is smoothly downplayed in the report to sound like a positive.
"There are no parties with whom the Group has contractual or other arrangements which are essential to the business of the Group except the contract with Apple Inc."

 

[Ailuros]

IMHO their high dependence on Apple primarily for PowerVR GPU IP is both a eulogy and a panacea. If someone reads one for their recent less stressfull presentations it's their ultimate goal to concentrate mostly on increasing mainstream and low end GPU IP sales if they land a couple of more licenses at Mediatek and other high volume chinese manufacturers like Spreadtrum.

They became actually so dependent on Apple because it seemed like the former management deliberately kicked the ball into their own goal, granting one GPU IP licensing deal to ARM after the other. The bet now obviously is if they can reverse the latter since high end GPU IP sales are NOT going to increase any time soon. They'll either stay more or less at the same levels or decrease.

In the end they managed to stay British so far and I honestly hope it'll remain like that and they are still selling in hundreds of millions when it comes to GPU IP, while others had to wave their white flag for smartphone SoCs even before they managed to even enter that market.

 

[Ailuros]

http://www.eetimes.com/document.asp?doc_id=1330507&page_number=1

All hail to the current management if they truly can yield profits again this year.